toyota jidosha kabushiki kaisha toyota motor corporation - Big Three ...

More documents

Recommendations

Info

Table of Contents The following table provides information regarding Toyota’s finance receivables and operating leases as of March 31, 2007 and 2008. Retail Financing Toyota’s finance subsidiaries acquire new and used vehicle installment contracts primarily from Toyota dealers. For instance, in the United States, approximately half of the used vehicle contracts acquired are certified Toyota used vehicle contracts which relate to vehicles purchased by dealers, reconditioned and certified to meet specified Toyota standards. These vehicles are then sold with an extended warranty from Toyota. Installment contracts acquired must first meet specified credit standards. Thereafter, the finance company retains responsibility for contract collection and administration. Toyota’s finance subsidiaries acquire security interests in the vehicles financed and can generally repossess vehicles if customers fail to meet their contractual obligations. Almost all retail financings are non-recourse, which relieves the dealers from financial responsibility in the event of repossession. In most cases, Toyota’s finance subsidiaries require their retail financing customers to carry automobile insurance on financed vehicles covering the interests of both the finance company and the customer. Toyota has historically sponsored, and continues to sponsor, special lease and retail programs by subsidizing below market lease and retail contract rates. Retail Leasing In the area of retail leasing, Toyota’s finance subsidiaries acquire new vehicle lease contracts originated primarily through Toyota dealers. Lease contracts acquired must first meet specified credit standards after which the finance company assumes ownership of the leased vehicle. The finance company is generally permitted to take possession of the vehicle upon a default by the lessee. Toyota’s finance subsidiaries are responsible for contract collection and administration during the lease period. The residual value is normally estimated at the time the vehicle is first leased. Vehicles returned to the finance subsidiaries at the end of their leases are sold by 27 Yen in millions US dollars in millions March 31, March 31, 2007 2008 2008 Finance Receivables Retail ¥ 7,005,631 ¥ 6,959,479 $ 69,463 Finance leases 1,061,738 1,160,401 11,582 Wholesale and other dealer loans 2,342,926 2,604,411 25,995 10,410,295 10,724,291 107,040 Deferred origination costs 108,076 106,678 1,065 Unearned income (403,191) (437,365) (4,366) Allowance for credit losses (112,116) (117,706) (1,175) Total finance receivables, net 10,003,064 10,275,898 102,564 Less – Current portion (4,108,139) (4,301,142) (42,930) Noncurrent finance receivables, net ¥ 5,894,925 ¥ 5,974,756 $ 59,634 Operating Leases Vehicles 2,783,706 ¥ 2,814,706 $ 28,094 Equipment 106,663 107,619 1,074 2,890,369 2,922,325 29,168 Less – Accumulated depreciation (640,997) (718,207) (7,169) Vehicles and equipment on operating leases, net ¥ 2,249,372 ¥ 2,204,118 $ 21,999
Table of Contents auction. For example, in the United States, vehicles are sold through a network of auction sites as well as through the Internet. In most cases, Toyota’s finance subsidiaries require lessees to carry automobile insurance on leased vehicles covering the interests of both the finance company and the lessee. Wholesale Financing Toyota’s finance subsidiaries also provide wholesale financing primarily to qualified Toyota vehicle dealers to finance inventories of new Toyota vehicles and used vehicles of Toyota and others. The finance companies acquire security interests in vehicles financed at wholesale. In cases where additional security interests would be required, the finance companies take dealership assets or personal assets, or both, as additional security. If a dealer defaults, the finance companies have the right to liquidate any assets acquired and seek legal remedies. Toyota’s finance subsidiaries also make term loans to dealers for business acquisitions, facilities refurbishment, real estate purchases and working capital requirements. These loans are typically secured with liens on real estate, other dealership assets and/or personal assets of the dealers. Insurance Toyota provides insurance services in the United States through Toyota Motor Credit Corporation’s wholly-owned subsidiary, Toyota Motor Insurance Services, Inc (“TMIS”) and its wholly-owned insurance company subsidiaries. Their principal activities include marketing, underwriting and claims administration. TMIS also provides coverage related to vehicle service agreements and contractual liability agreements through Toyota dealers to customers. In addition, TMIS also provides coverage and related administrative services to affiliates of Toyota Motor Credit Corporation. Toyota dealerships in Japan and in other countries and regions also engage in vehicle insurance sales. Toyota currently has voting power of approximately 34.6% in Aioi Insurance Co., Ltd, a leading insurance company in Japan. Toyota continues to use its strong relationship with Aioi to develop attractive consumer insurance products for Toyota’s automotive customers. Abroad, Toyota conducts its finance and insurance business in alliance with Aioi, mainly in European countries and Australia. Other Financial Services Toyota Finance Corporation launched its credit card business in April 2001 and began issuing the Lexus credit cards in 2005 when the Lexus brand was introduced in Japan. As of March 31, 2008, Toyota Finance Corporation has over 6.5 million card holders of which approximately 36,000 are Lexus credit card holders. Toyota also established Toyota Financial Services Securities Corporation, a subsidiary of Toyota Financial Services Corporation, which commenced operations in April 2001 to coincide with the launch of the credit card business. Through Toyota Financial Services Securities Corporation, Toyota provides financial services including sales of investment trusts and high grade corporate bonds. All Other Operations In addition to its automotive operations and financial services operations, Toyota is involved in a number of other non-automotive business activities. Net sales for these activities totaled ¥1,347 billion in fiscal 2008, ¥1,324 billion in fiscal 2007 and ¥1,190 billion in fiscal 2006. Sales to external customers of all other operations represented 2.5% of Toyota’s net revenues for fiscal 2008. Substantially all of Toyota’s revenues from other operations were derived in Japan. Pre-fabricated Housing Toyota is also engaged in the manufacture and sale of prefabricated housing. Toyota has adapted the core production systems and methodologies used in its automotive operations to this business. Toyota established its 28
Page 1 and 2: http://www.sec.gov/Archives/edgar/d
Page 3 and 4: Table of Contents TABLE OF CONTENTS
Page 5 and 6: Table of Contents As used in this a
Page 7 and 8: Table of Contents Year Ended March
Page 9 and 10: Table of Contents Month Ended High
Page 11 and 12: Table of Contents Toyota believes t
Page 13 and 14: Table of Contents During fiscal 200
Page 15 and 16: Table of Contents Annual Unit Sales
Page 17 and 18: Table of Contents • Establishing
Page 19 and 20: Table of Contents August 2007, the
Page 21 and 22: Table of Contents Going forward, To
Page 23 and 24: Table of Contents results in the ou
Page 25 and 26: Table of Contents Japanese automoti
Page 27 and 28: Table of Contents Just-in-Time is a
Page 29 and 30: Table of Contents systems that are
Page 31: Table of Contents Toyota Motor Cred
Page 35 and 36: Table of Contents Governmental Regu
Page 37 and 38: Table of Contents Vehicle Fuel Econ
Page 39 and 40: Table of Contents the dynamic rollo
Page 41 and 42: Table of Contents Recovery Act, the
Page 43 and 44: Table of Contents Facility Principa
Page 45 and 46: Table of Contents Description of Ac
Page 47 and 48: Table of Contents responded to the
Page 49 and 50: Table of Contents In addition to it
Page 51 and 52: Table of Contents Toyota’s share
Page 53 and 54: Table of Contents entered into to h
Page 55 and 56: Table of Contents Geographic Breakd
Page 57 and 58: Table of Contents Research and deve
Page 59 and 60: Table of Contents the prior year. T
Page 61 and 62: Table of Contents During fiscal 200
Page 63 and 64: Table of Contents • vehicles type
Page 65 and 66: Table of Contents Sensitivity analy
Page 67 and 68: Table of Contents significant judgm
Page 69 and 70: Table of Contents Total finance rec
Page 71 and 72: Table of Contents To expand the fro
Page 73 and 74: Table of Contents The following tab
Page 75 and 76: Table of Contents Biographies Fujio
Page 77 and 78: Table of Contents 2007. Mr. Arashim
Page 79 and 80: Table of Contents 6.C BOARD PRACTIC
Page 81 and 82: Table of Contents 4. Corporate Gove
Page 83 and 84:
Table of Contents Each of the perso
Page 85 and 86:
Table of Contents To the extent kno
Page 87 and 88:
Table of Contents 9.D SELLING SHARE
Page 89 and 90:
Table of Contents Dividends • the
Page 91 and 92:
Table of Contents A holder of share
Page 93 and 94:
Table of Contents Shares acquired b
Page 95 and 96:
Table of Contents as well as on the
Page 97 and 98:
Table of Contents U.S. Federal Inco
Page 99 and 100:
Table of Contents having been defer
Page 101 and 102:
Table of Contents by Toyota’s der
Page 103 and 104:
Table of Contents Based on this eva
Page 105 and 106:
Table of Contents services, which a
Page 107 and 108:
Table of Contents ITEM 17. FINANCIA
Page 109 and 110:
Table of Contents To the Shareholde
Page 111 and 112:
Table of Contents TOYOTA MOTOR CORP
Page 113 and 114:
Page 115 and 116:
Page 117 and 118:
Table of Contents 1. Nature of oper
Page 119 and 120:
Page 121 and 122:
Page 123 and 124:
Page 125 and 126:
Table of Contents 6. Marketable sec
Page 127 and 128:
Table of Contents 7. Finance receiv
Page 129 and 130:
Page 131 and 132:
Page 133 and 134:
Page 135 and 136:
Page 137 and 138:
Page 139 and 140:
Page 141 and 142:
Page 143 and 144:
Page 145 and 146:
Table of Contents The impact of ado
Page 147 and 148:
Table of Contents Components of the
Page 149 and 150:
Page 151 and 152:
Page 153 and 154:
Page 155 and 156:
Table of Contents 24. Segment data:
Page 157 and 158:
Table of Contents Geographic Inform
Page 159 and 160:
Table of Contents Overseas Revenues
Page 161 and 162:
Page 163 and 164:
Table of Contents Statement of cash
Page 165 and 166:
Table of Contents 25. Per share amo
Page 167:
Table of Contents SIGNATURES The re
show all

toyota jidosha kabushiki kaisha toyota motor corporation - Big Three ...

Create successful ePaper yourself

Delete template?

Save as template?